Real estate sector in present scenario is going through a lean patch, many organisations are either running in loss or with a marginal profits. As in state government and central government departments contractors are facing huge problems that are in turn tending to decrease in contractor profits. The present study focuses on study of various factors that affect contractor’s performance who have been awarded projects on the basis of lowest bid awards. The study analyses various factors and their impacts on the basis of responses collected form a survey. On the basis of overall index and relative importance index factor causing a major impact on contractor’s efficiency have been identified.